tv Real Money With Ali Velshi Al Jazeera October 16, 2013 7:00pm-7:31pm EDT
>> this is al jazeera america live from new york city. i'm tony harris with a look at the day's top stories. you're looking at senator ted cruz on the floor of the senate now. we understand that a deal is in place. the debate continues. it will stop shortly and that there will be a vote that will bring us one step close for ending the government shutdown. the house is expected to vote later this even. if it passes, the measure will allow the nation to bore woe nun untiborrow moneyuntil 2014. there were gains in the financial and healthcare industry. the dow jumped 205 points and
nasdaq also saw huge gains. >> when it comes to moving forward the president will take the same approach and open-mindedness that he has in the past, and he hopes there will be leaders and rank and file members in the republican party willing to meet him halfway and reach a deal that does good for our economy and our people. >> the white house said in up coming budget negotiations everything will be on the table. this comes as the president plods the senate compromise. those are our headlines. "real money with ali velshi" from washington, d.c. is next. >> it's down to the wire, a deal that averts economic disaster makes its way through congress like kicking the can down the road can still inflict harm upon
us. welcome to washington, d.c. for a special one-hour show. i'm ali velshi, and this is "real money." ♪ >> welcome to "real money," a debt deal is finally in clear sight, but the vote imminent. the just hours away from a possible debt ceiling meltdown. it looks like congress will kick the debt crisis cans beyond the holidays. >> it's never easy for two sides to reach consensus. >> the majority leader now began a serious of conversations about a way to get the government reopened, and to prevent default. i'm confident we'll be able to do both. >> this is what we know as of now. leaders in the senate have crafted a last-minute deal that
reopens the federal government by funding its operations through january 15th. that deals with the shutdown. that raises the u.s. debt ceiling above 17 trillion-dollar which will allow the treasury to keep paying its bills through february 7th. they will start far-reaching negotiations for a new budget. and republicans get stronger income verification procedures for people who want subsidies to pay for their obamacare health care insurance. this is not a done beal until the house and senate votes on t and neither have done, it could be a long night. the investors liked what they heard, expect more gains. federal agencies can get back to doing the people's work.
hundreds of workers and contractors can collect their paychecks and americans can relax somewhat because the government won't implode over the holidays. without a long-term deal the americans will continue to feel the uncertainty that washington breathes. businesses will hold off on hiring. consumers will hesitate to spend and already the federal reserve will see slower growth in many parts of the countries in the weeks leading up to the crisis in washington. well, al jazeera american white house correspondent mike viqueira is joining us from the white house. mike, two weeks ago when this began you and i were talking about. we said that this is how it would ultimately end. there was no sentiment that would allow the tea party members of the caucus to preva
prevail. let's sift through this. >> reporter: as we sift through the wreckage of the house republican congress, are they likely to come up with a budget agreement in the time allotted then over the last five years when they've had the budget through spring. this is january 15th, three months to adopt a new spending bill to keep the government running, kicking the can down the road is a cliché we've heard one too many times over the course of the last few days and over the course of the last few negotiations. that's what's going on here. until the fundamental dynamic changes, we've seen this break threw that everyone ithroughthat going bring much. harry reid, mitch mcconnell who played a key role in
brokering deals in the past all of a sudden enter sandman, mitch mcconnell, harry reid working this out. and waiting for members of the house of representatives to go through the motions. there was no question that john boehner was going to be able to come up with something. and when he emerged from a series of closed door meetings with with house republicans, it was clear that the capitulation was complete. after the senate passes this tonight, ali it will will go to the house floor. they're not going to worry about it. they want this off their plate and live to fight another day. >> tell me, mike, if this bill could have passed at any time explain what has changed? what allowed the bill to pass today that couldn't have happened over the last two weeks?
>> reporter: it's impossible to explain without eye rolling and hand wringing. what we have here is the state of our politics, the state of a broken house of representatives. there's no question of that. but what john boehner did, it looked horrible from the outside, and it looked horrible from the inside because people lost a lot of money. but he has a core base in his party who motivate people who pay the bills, who donate to campaigns, who show up to vote at midterm elections and non-presidential years, now we have these ideological driven super pacs donating millions of dollars, some of we don't even know who donated it to begin with, john boehner had to make it clear the writing was on the wall and they had no choice to go along with an unified party. the white house, and harry reid was the bad guy. republicans were divided, now
they're scattered and in retre retreat. >> mike, you called it two weeks ago. i'm sorry, you did. i would have liked it to go a different way. mike, you and i will have another late night. don't go too far. we'll get back to mike as soon as there, there are further developments. we do expect to hear from the president once this passes both houses. let's go to the senate. we are expecting the bill to go through the senate furs. we're looking at senator schumer from new york. until then i want to bring in alice fitzgerald. she reports on the markets, economy, and politics. that's where we are right now. those things have come together. most people don't spend a lot of time in all of them, and now everyone in america has got to understand this. >> we're actually where they intersect most clearly. tomorrow, treasurely bills, how
our government borrows money. if they sell bonds, if they don't have the authority to borrow that money, to sell those bonds, they don't have the money to pay their bills to contractors and their own employees, many of whom they have furloughed. >> you're not talking about this in the past tense because until we see it signed by the president we're not believing it. >> there is a lot of optimism out there, but i have my doubts until the vote takes place because we've seen this kind of brinksmanship before. congress can surprise us. >> what is your sense--everybody says, see, it wasn't going to happen. everyone was carrying on about how the sky was falling and chicken little, and it didn't happen. but it really did feel like it could happen. they were taking it seriously. they were not interested in retreat. >> there were many people in congress who said it won't matter if we can't, you know, if we go through the debt ceiling because we can still pay the
interest on the bonds. maybe that would be good for us because maybe it would force us to cut our budget. but there is more than the annual payment hitting that affects our credit rating and how markets view us. the perception of our ability to pay or willingness is the issue here is what is important, too. >> does that mean that the treasury has these options. this is where they get the money. they come out and get money for it. does it mean that there is some entities, big entities, who would say i can get the same kind of interest rate from another country who doesn't threaten to pay its bills. >> right, they my race interest, they may see great britain, japan safer because their political system is working better than ours right now. well, i could bario from japan
for this amount of money. the u.s. looks a little bit crazy so i'll charge that country a little bit more. >> there are actual checks, social security checks, this is part of the payments that. >> right, if i have a credit card, and the credit card company that holds that card sees that i'm not paying my electribill or car bill they might raise the interest rate on that credit card even if i'm not missing a payment. but laying off workers and not paying them, that is another obligation that we're not making. >> we need to follow this very closely. it needs to get by the senate. they need to vote on this first, they'll suspend some rules, it will go through the house. then it goes to pennsylvania avenue to the other side to the white house where the president
said he'll be ready to sign it. we'll see all sorts of people come out and pat themselves on the back. i'm going to take the other side of this for a second. wouldn't this have forced us to address our spending issues in this country? >> it could have, yes. if we can't pay the bills, we can't spend any more money then we have to pay as we go. >> for all those people out there sitting in their homes saying i wish these guys wouldn't have backed down. >> well, spending is a huge part of our economy. if we suddenly cut it it's like coconsumers saying i'm only goig to spend half as much as i used to. that's not good. one, it's bad for the government who will take in your tax receipts and be able to pay less. it's just not the way to control your spending. the way to control spending is
to budget lower and appropriate less spending. >> we have studied this so many times. we have commissions, and the president's budget, we have options out there. >> right, all of those by the way, everybody's suggestion spends less or cuts the deficit than the current budget we've been running on for the last four years. everything that we're doing is enter than what we're doing right now. >> pretty much. every one of those spending plans requires people to make a decision to cut spending in something. so you've got democrats who won't let anybody cut spending on education or on social security, god forbid we reach social security age. republicans do not want to cut any spending on defense. they're funding programs that the leaders of the military want cuts but they won't let them cut
because their jobs depend on it. >> all jobs are local. >> default means nobody has to say i want to cut this. >> the most dangerous decision is the least politically harmful for some people. those who were okay to default can go only and say i stood up on principle. >> we've seen members of congress completely unwilling to stand up and say i'm willing to risk my job to do the right thing for the country. >> that's right. don't go far we're going to keep an eye on this together. as allison said, the sky is not falling. at least not yet. let's get back to an issue in almost every home in america. jobs. >> coming back up around
january 15th, i think it will play politics with the american people again. in american journalism - >> introduces america tonight. >> in egypt, police fired teargas at supporters of the ... >> a fresh take on the stories that connect to you. [[voiceover]] they risk never returning to the united states. >> grounded. >> real. >> unconventional. [[voiceover]] we spent time with some members of the gangster disciples. >> an escape from the expected. >> i'm a cancer survivor. not only cancer, but brain cancer. america tonight 9 eastern on al jazeera america
>> the recovery was fragile to begin with, and people are going to willfully de rail us. that's outrageous. >> that's exactly how i feel. don't willfully de rail a fragile recovery. at the senate they're taking roll call not the vote, they may take the roll call vote to pass this bill, or they may just go for unanimous consent. we don't know how that's going to work. it could happen very quickly. a very empty-looking senate. my left shoulder to your right on the screen. if you want to see how the ups and downs of washington are affecting the economy. retailers offer a good snap shop. they're cautious in their hiring
anas they get ready for the holiday shopping. >> retailers created nearly 400,000 jobs over the last year alone. >> i think retail is the first to really feel the effects. retail is really the front line. i think we oh truly have our finger on the pulse of the economy in general. >> reporter: but there are concerns that reports from the front line are not looking very strong. retailers are expected to add just 700,000 temporary workers during the make or break holiday season in which some eastern and a halearn halfof their sales. >> i would expect spending on holiday gifts and holiday travel to be slow, and that the affects would ripple out as well. >> reporter: what is happening in washington is not helping.
the international council of shopping center found 40% of consumers scaled back on their spending. >> when there is something extreme in politics, you do see a quick and sharp and sudden down turn in sales. >> reporter: an impact that retailers small and large will be watching. >> the government shutdown, it's on the minds of our u.s. customers. as you would expect we're following this situation very closely. >> reporter: snowinknowing uncey is not good for business, consumers or the job market. al jazeera. >> nothing in this country is going to truly get back to the normal we're used to until people get back to work. i'm not just talking about the furloughed workers from d.c. i'm talking about those who make up the backbone of this economy. if they're not working they're not spending. if they're not spending not much
is fueling economic growth. we could spend the next few months concentrating on jobs. that's is a fantastical and unrealistic idea but it happens to be the passion of labor committee sylvia alagretto who likely thinks it congress had invested a small portion of its time dealing with jobs as it has dealt with these partisan issues we might be further than we are. this is yet another big distraction facing this economy. good to see you again. tell me your thoughts. >> it's just like you've been talking about. we're almost six years since the great recession took hold. and it's been one manmade crisis after another. this is not the first time we've dealt with the debt ceiling.
a great imagination of movers and shakers is becoming a nation of naysayers. we're not dealing with the problems at hand which in my mind is a job crisis. we need jobs and good quality jobs, and no one is even talking about this. >> what if they were to devote their attention, over to my shoulder, if congress were to say we're going to deal with the big thing, if we got for people jobs and americans were working to a larger degree, they would be paying more taxes and fewer recipients than government aid. it would spurs the economy. is it congress that creates jobs or is it simply demand? >> well, of course they could. that's what kinsian economics is. that's what we've needed to do for years now. that's why we're four and a half years into recovery, we're still lacking 2 million jobs of where we were in 2007. so we need, like we've talked
about before, 10 million jobs to move the needle on unemployment to be above south of 5%. that's the stimulus. that's the fiscal stimulus that you want. instead, we have this incessant focus on debt and deficit, which to a lot of people they don't understand. they see big numbers but it scares them. look, it's the ratio of the interest payments on the debt to the size of our economy that really matters. that ratio is at a post world war ii low. the interest rates that we're paying are extremely low. over the last four and a half years and longer, really since the economy fell off the cliff in 2008-2009, we should have been spending more. nobody wants to hear that, but that's what we should be doing. we're operating in an economy below capacity. that's when the government can come in, do real important
change and get us on our way. but we have to get the economy growing. we're working at an economy far below capacity. what that means is that workers have stagnant wages and these numbers that they're missing on will never be regained again. >> thank you for joining us. sylvia salgretto, from u.s uc berkeley. >> one company selling popcorn, but not in the way that you might think. >> hiring temp workers in time for the holiday rush. they were about to receive a
lone, but the government shutdown delayed the low. you're doing well. you're expanding. you want to hire people. you have a small business administration loan. it's still you borrowing money from a bank, but it has to go through the government. you were close, what, within a couple of days? >> yeah, we were very close. >> so now what happens? you're watching closely. we're watching the nat, we are watching the house, they're going to open up tomorrow morning and you're going to call and say, give me my. minute. >> we're not achieving much, so now we just wait. >> the holiday season that we think comes in right after
thanksgiving, but seems to creep back every year. but black friday went from where companies were not profitable and now is in the black, profitable. >> i'm having a hard time hearing you. >> you do so much of your business in this holiday season, about 40% of our annual revenue is in december. now what has happened? you sad around. you didn't get the loan. did that stop something that you were doing in your business? >> oh sure, it's very challenge. we're trying to purchase inventory popcorn packaging. [ inaudible ] >> grant, i'm having a little bit of a problem. we'll check on that and get back to you. grant jones is the president, at least i know how to say it kukuroza popcorn from seattle. a company ready to create jobs.
he'll do that when he gets his loan. let's see how far we are to seeing the government open. we're waiting for them to pass this bill. it is much more populated than what is, then they'll take a vote. we don't know if that is a vote where search on record or they do a voice vote. but it goes through the senate, and then the house of representatives, it passes, keep your fingers crossed, and then the shutdown ends once the president signs this, and agencies will start making phone calls and get people back to work. we're going to talk about real ceilings and real houses. how the mess in washington is affected by americans. we'll have that and more when
>> confidence among home builders is down and you can guess one of the reasons why, washington. the national association of home builders report the government shutdown regarding the nation's debt limit. now hopefully it will get back on track. robert deck joins me, thank you so much for joining me here. boy you came through a tough time. it started to look good. builders were back at work, and sales from home building stores from renovations. where are we now? >> 2012 and 2013 have been very good years particularly compared to 2009-,'10, and '11. we're back halfway back to normal in housing and the
building index that we have, that really has shown that the builders are feeling the benefit of the improvement that we've seen. >> then you started right around may seeing those interest rates pick up. it sort of slowed everything down a little bit. which is to be expected, and there are moments and places around the country where they're getting a little frothy in terms of the housing crisis. we know the effect of that. what has happened since then. what is this shutdown and uncertainty about the debt ceiling done to home buyer sentiment. >> it's all about confidence on the consumer side and builder side. the last time we had the shutdown in '95, '96, they measured it took a half point off gdp, the gdp growth. it looks like we'll see resolution here. that's good